Universal Music Group NVCHIX:UMGA +1.62%75 Current Ratio is 0.63 as of Dec. 2025, which is 3% below its 10-year median of 0.65. GuruFocus rates CHIX:UMGA with a GF Score™ of 75/100 and a GF Value™ of €27.66 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,032 Media - Diversified companies, Universal Music Group NV ranks worse than 84.5% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Universal Music Group NV's current ratio for the quarter that ended in Dec. 2025 was 0.63.
Universal Music Group NV has a current ratio of 0.63. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Universal Music Group NV has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Universal Music Group NV's Current Ratio or its related term are showing as below:
CHIX:UMGa'
s Current Ratio Range Over the Past 10 Years
Min: 0.55 Med: 0.65 Max: 0.86
Current: 0.63
During the past 9 years, Universal Music Group NV's highest Current Ratio was 0.86. The lowest was 0.55. And the median was 0.65.
CHIX:UMGa's Current Ratio is ranked worse than 84.5% of 1032
companies
in the Media - Diversified industry
Industry Median: 1.57
vs CHIX:UMGa: 0.63
Universal Music Group NV (CHIX:UMGa) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Universal Music Group NV Current Ratio Related Terms
Universal Music Group NV Current Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CHIX:UMGA vs NFLX, DIS, WBD: Current Ratio Comparison
For the Entertainment subindustry, Universal Music Group NV's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Universal Music Group NV Current Ratio vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Universal Music Group NV's Current Ratio distribution charts can be found below:
* The bar in red indicates where Universal Music Group NV's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Universal Music Group NV (CHIX:UMGA) has a Current Ratio of 0.63 as of Dec. 2025. This is near median its historical median of 0.65. Over the past decade, Universal Music Group NV's Current Ratio has ranged from 0.55 to 0.86. According to the industry distribution chart, Universal Music Group NV ranks #872 out of 1032 companies in the Media - Diversified industry, placing it in the top 84.5%.
Is Universal Music Group NV's Current Ratio too high?
Universal Music Group NV's current Current Ratio of 0.63 is near median its 10-year median of 0.65. Over the past 10 years, this metric has ranged from a low of 0.55 to a high of 0.86. The Media - Diversified industry median Current Ratio is 1.57. Universal Music Group NV's value of 0.63 is 59.9% below this industry median. Based on the distribution chart, Universal Music Group NV ranks #872 out of 1032 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Universal Music Group NV has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Universal Music Group NV's Current Ratio compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Universal Music Group NV ranks #872 out of 1032 companies for Current Ratio. This places Universal Music Group NV in the lower half of its industry. The industry median Current Ratio is 1.57. Universal Music Group NV's value of 0.63 is 59.9% below this benchmark. Historically, Universal Music Group NV's own Current Ratio has ranged from 0.55 to 0.86 over the past decade. While the company's 10-year median is 0.65 vs. the industry median of 1.57, Universal Music Group NV has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Media - Diversified company?
The median Current Ratio among Media - Diversified companies is 1.57, based on 1,032 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal Music Group NV's current Current Ratio of 0.63 is 59.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Media - Diversified industry, the median Current Ratio is 1.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Music Group NV's current Current Ratio is 0.63, which is near median its own 10-year median of 0.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Music Group NV stock overvalued right now?
Based on GuruFocus' analysis, Universal Music Group NV (CHIX:UMGA) is currently considered Possible Value Trap. The stock's GF Value™ is €27.66, compared to a current price of €18.40 — trading 33.5% below its estimated fair value. The current Current Ratio is 0.63, which is near median its 10-year median of 0.65 and 59.9% below the Media - Diversified industry median of 1.57. Universal Music Group NV's overall GF Score™ is 75/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Universal Music Group NV (CHIX:UMGA), the current Current Ratio is 0.63 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Universal Music Group NV (CHIX:UMGA) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Music Group NV stock appears to be undervalued.
The current stock price of €18.40 is trading 33.5% below its estimated GF Value™ of €27.66.
GuruFocus considers Universal Music Group NV to be Possible Value Trap.
Key valuation signals for CHIX:UMGA:
Current Ratio: 0.63 (near median its 10-year median of 0.65)
GF Value™: €27.66 vs. price of €18.40 (33.5% below fair value)
Industry Position: 59.9% below the Media - Diversified median (#872 of 1032)
No single metric tells the full story. See the CHIX:UMGA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Music is the largest of the three major record companies. Recorded music accounts for most of the firm's revenue, with the segment housing more than a dozen record labels, including notable names like Interscope, Capital Music, Motown Records, and Def Jam. Some of the most successful current artists signed to record deals with Universal include Taylor Swift, Drake, The Weeknd, and Morgan Wallen. Most of Universal's remaining sales come from its publishing segment, which generates revenue for songwriters and composers, including some of Universal's recording artists as well as songwriters and composers who do not record music themselves or are attached to other labels. Universal's publishing group has nearly 4.5 million owned or administered titles in its catalog.
75GF Score
Get the complete analysis for CHIX:UMGA
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